The Indian Administrative Service (Pay) Third Amendment Rules, 2014.

The Indian Administrative Service (Pay) Third Amendment Rules, 2014.

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FM will give due consideration merger of da and interim relief: Pre-budget meeting with Central Trade Unions

The Union Finance Minister Shri Arun Jaitley said that the Government will give due consideration to the Ten Point Joint Charter of Demands including proper allocation of funds for merger of dearness allowance and interim relief, given by the Central Trade Unions while formulating the budgetary proposals. The participating Central Trade Unions gave a joint memorandum to the Finance Minister for his consideration and positive response.

CENTRAL TRADE UNIONS JOINT MEMORANDUM TO FINANCE MINISTER Source: BMS Date: 06 Jun 2014 20:38:30 6th June 2014 The Hon’ble Minister of Finance, Govt. of India, North Block, New Delhi Dear Sir, We welcome you over your takeover as Finance Minister of the new Govt. formed on verdict of the people of India and thank you for having invited the Central Trade Unions representing the most important stake holder, the working men and women of this country, in both organized as well as unorganized sector, to this pre-budget consultations. We wish that our candid observations, considered views and concrete proposals are taken in the right spirit and responded with all seriousness and given appropriate reflections in the ensuing budget 2014-15. Our proposals: Some of these specific proposals have time and again been placed by us in various policy making fora including the earlier pre-budget consultations. However, we would like to reiterate them, urging your positive response: Take effective measures to arrest the spiraling price rise and to contain inflation; Ban speculative forward trading in commodities; Universalise and strengthen the Public Distribution System; Ensure proper check on hoarding; Rationalise, with a view to reduce the burden on people, the tax/duty/cess on petroleum products. There must be massive investment in the infrastructure in order to stimulate the economy for job creation. It is our considered view that the Public sector should take the leading role in this regard. The plan & non-plan expenditure should be increased in the budget to stimulate jobs creation and guarantee consistent income to people. Minimum wage linked to Consumer Price Index must be guaranteed to all workers, taking into consideration the recommendations of the 15th Indian Labour Conference as enriched by Apex Court of the country as reiterated in 44th ILC in 2012. In any case, it should not be less than Rs.15,000/- p.m. FDI should not be allowed in crucial sectors like defence production, telecommunications, Railways, financial sector, retail trade, education, health and media. The public sector units played a crucial role during the year of severe contraction of private capital investment immediately following the outbreak of global financial crisis. PSUs should be strengthened and expanded. Disinvestment of shares of profit making public sector units should be stopped forthwith. Budgetary support should be given for revival of potentially viable Sick CPSUs. In view of huge joblosses and mounting unemployment problem, the ban on recruitment in Govt. deptts, PSUs and autonomous institutions (including recent Finance Ministry’s instruction to abolish those posts not filled for one year) should be lifted as recommended by 43rd Session of Indian Labour Conference. Condition of surrender of posts in govt. departments and PSUs should be scrapped and new posts be created keeping in view the new work and increased workload. Proper allocation of funds be also made for interim relief and 7th Pay Commission. The scope of MGNREGA be extended to agriculture operations and employment for minimum period of 200 days with guaranteed statutory wage be provided, as unanimously recommended by 43rd Session of Indian Labour Conference. The massive workforce engaged in ICDS, Mid-day meal scheme, Vidya volunteers, Guest Teachers, Siksha Mitra, the workers engaged in the Accredited Social Health Activities (ASHA) and other schemes be regularized. No to privatization of centrally funded schemes. Universalisation of ICDS be done as per Supreme Court directions by making adequate budgetary allocations. Steps be taken for removal of all restrictive provisions based on poverty line in respect of eligibility coverage of the schemes under the Unorganised Workers Social Security Act 2008 and allocation of adequate resources for the National Fund for Unorganised Workers to provide for Social Security to all unorganized workers including the contract/casual and migrant workers in line with the recommendations of Parliamentary Standing Committee on Labour and also the 43rd Session of Indian Labour Conference. The word BPL redefined and redistributed at the earliest. Remunerative Prices should be ensured for the agricultural produce and Govt. investment public investment in agriculture sector must be substantially augmented as a proportion of GDP and total budgetary expenditure. It should also be ensured that benefits of the increase reach the small, marginal and medium cultivators only; Budgetary provision should be made for providing essential services including housing, public transport, sanitation, water, schools, crèche health care etc. to workers in the new emerging industrial areas. Working women’s hostels should be set up where there is a concentration of women workers. Requisite budgetary support for addressing crisis in traditional sectors like Jute, Textiles, Plantation, Handloom, Carpet and Coir etc. Budgetary provision for elementary education should be increased, particularly in the context of the implementation of the ‘Right to Education’ as this is the most effective tool to combat child labour. The system of computation of Consumer Price Index should be reviewed as the present index is causing heavy financial loss to the workers. Income Tax exemption ceiling for the salaried persons should be raised to Rs.5 lakh per annum and fringe benefits like housing, medical and educational facilities and running allowances should be exempted from the income tax net in totality. Threshold limit of 20 employees in EPF Scheme be brought down to 10 as recommended by CBT-EPF. Pension benefits under EPS unilaterally withdrawn by the Govt. should be restored. Govt. and Employers contribution be increased to allow sustainability of Employees Pension Scheme and for provision of minimum pension of Rs.3000/- p.m. New Pension Scheme be withdrawn and newly recruited employees of central and state govts on or after 1.1.2004 be covered under Old Pension Scheme; Demand for Dearness Allowance merger by Central Govt. and PSUs employees be accepted and adequate allocation of fund for this be made in the budget; All interests and social security of the domestic workers to be statutorily protected on the lines of the ILO Convention on domestic workers. The Cess Management of the construction workers is the responsibility of the Finance Ministry under the Act and the several irregularities found in collection of cess be rectified as well as their proper utilization must be ensured. In regard to resource mobilization, we would like to emphasize the following: A progressive taxation system should be put in place to ensure taxing the rich and the affluent sections who have the capacity to pay at a higher degree. The corporate service sector, traders, wholesale business, private hospitals and institutions etc. should be brought under broader and higher tax net. Increase taxes on luxury goods and reduce indirect taxes on essential commodities as at present the overwhelming majority of the populations are subjected to Indirect taxes that constitute 86% of the revenue. Concrete steps must be taken to recover huge accumulated unpaid tax arrears which has already crossed more than Rs.5 lakh crore on direct and corporate tax account alone, and has been increasing at a geometric proportion. Such huge tax-evasion over and above the liberal tax concessions already given in the last two budgets should not be allowed to continue. We welcome the constituted of SIT for black money and urge for speedy action. Effective measures should be taken to unearth huge accumulation of black money in the economy including the huge unaccounted money in tax heavens abroad and within the country. Finance Minister should make provisions to bring back the illicit flows from India which are at present more than twice the current external debt of US $ 230 billion. This money should be directed towards providing social security. Concrete measures be expedited for recovering the NPAs of the banking system from the willfully defaulting corporate and business houses. By making provision in Banking Regulations Act, CMDs and Executives to be made accountable for creation of NPAs. Tax on Long term capital gains to be introduced; so also higher taxes on the security transactions to be levied. The rate of wealth tax, corporate tax, gift tax etc. to be expanded and enhanced. ITES, outsourcing sector, Educational Institutions and Health Services etc. run on commercial basis should be brought under Service Tax net. Govt. Small saving instruments under postal and other agencies be encouraged by incentivizing commission agents of these scheme OUR SERIOUS CONCERN: We would like to express our strong resentment that the previous Govt. failed to positively respond to the collective voice of the Central Trade Unions on the very important issues concerning the working people of India, both organized and unorganized, consistently repeated in the form of a ‘10 point charter’ backed by several collective nationwide programmes. We expect that this Govt. will take initiative to discuss these issues with the Central Trade Unions in order to find a solution. We also express our opposition to the so called Banking Reforms encouraging private sector/capitalists banking at the cost of public sector banks which saved the economy to an extent during the last global financial meltdown. Several such measures against the working men and women in this country including anti workers proposals contained in the New Manufacturing Policy have our strong opposition, as in our experience these kinds of measures have helped the growth of only a small section of the capitalists while the larger sections of the working population continue to be marginalized and impoverished. POST BUDGET MEETING WITH TRADE UNIONS Successive Finance Ministers have agreed to hold post budget meetings / consultations with the central trade unions. However, it has not been materialized except for one occasion. We understand such meetings did take place with the Corporate Associations/Employers Federations. We would like to importunate upon you to arrange such post budget meeting with trade unions also. With regards, Yours sincerely, BMS INTUC AITUC HMS CITU AIUTUC TUCC SEWA AICCTU UTUC LPF Source: http://www.bms.org.in

Press Information Bureau News in this regard:-

Press Information Bureau  Government of India Ministry of Finance  06-June-2014 15:31 IST  Union Finance Minister Holds Pre-Budget Consultation Meeting With the Representatives of Trade Union Groups; Skill Development to be Given Priority for Generating Employment Oppurtunities   The Union Finance Minister Shri Arun Jaitley said that skill development would be given priority so that more and more trained workers join the Indian economy. He said that the Government will give due consideration to the Ten Point Joint Charter of Demands given by the Central Trade Unions while formulating the budgetary proposals. The Finance Minister was speaking here today while interacting with the representatives of the Central Trade Unions as part of his Pre-Budget Consultation meetings.  Along with the Finance Minister, the meeting was attended by Ms. Nirmala Sitharaman, Minister of State for Finance and Corporate Affairs, Shri Ratan P. Watal, Expenditure Secretary, Shri Rajiv Takru, Revenue Secretary, Smt. Gauri Kumar, Secretary, Ministry of Labour and Employment and senior officers of the Ministry of Finance among others.  The participating Central Trade Unions gave a joint memorandum to the Finance Minister for his consideration and positive response. Some of the specific proposals contained there in are given below:  Take effective measures to arrest the spiraling price rise and to contain inflation; Ban speculative forward trading in commodities; universalize and strengthen the Public Distribution System(PDS); ensure proper check on hoarding; rationalize, with a view to reduce the burden on people, the tax/duty/cess on petroleum products.  Massive investment in the infrastructure in order to stimulate the economy for job creation. Public Sector should take the leading role in this regard. The plan and non-plan expenditure should be increased in the budget to stimulate jobs creation and guarantee consistent income to people.  Minimum wage linked to  Consumer Price Index (CPI) must be guaranteed to all workers, taking into consideration the recommendations of the 15th Indian Labour Conference . It should not be less than Rs. 15,000/- p.m.  FDI should not be allowed in crucial sectors like defence production, telecommunications, railways, financial sector, retail trade, education, health and media.  The Public Sector Units (PSUs) played a crucial role during the year of severe contraction of private capital investment immediately following the outbreak of global financial crisis. PSUs should be strengthened and expanded. Disinvestment of shares of profit making public sector units should be stopped forthwith. Budgetary support should be given for revival of potentially viable sick CPSUs.  In view of huge job losses and mounting unemployment problem, the ban on recruitment in Government departments, PSUs and autonomous institutions (including recent Finance Ministry’s instruction to abolish those posts not filled for one year) should be lifted as recommended by 43rd Session of Indian Labour Conference. Condition of surrender of posts in government departments and PSUs should be scrapped and new posts be created keeping in view the new work and increased workload.   Proper allocation of funds be made for interim relief and 7th Pay Commission.  The scope of MGNREGA be extended to agriculture operations and employment for minimum period of 200 days with guaranteed statutory wage be provided, as unanimously recommended by 43rd Session of Indian Labour Conference.  The massive workforce engaged in ICDS, Mid Day Meal Scheme, Vidya volunteers, guest teachers, Siksha Mitra, the workers engaged in the Accredited Social Health Activities (ASHA) and other schemes be regularized. No to privatization of centrally funded schemes. Universalization of ICDS be done as per Supreme Court directions by making adequate budgetary allocations.  Steps be taken for removal of all restrictive provisions based on poverty line in respect of eligibility coverage of the schemes under the Unorganized Workers Social Security Act 2008 and allocation of adequate resources for the National Fund for Unorganised Workers to provide for social security to all unorganised workers including the contract/casual and migrant workers in line with the recommendations of the Parliamentary Standing Committee on Labour and also the 43rd Session of Indian Labour Conference. The word BPL redefined and redistributed at the earliest.  Remunerative prices should be ensured for agricultural produce and Government investment, public investment in agriculture sector must be substantially augmented as a proportion of GDP and total budgetary expenditure. It should also be ensured that benefits of the increase reach the small, marginal and medium cultivators only.  Budgetary provision should be made for providing essential services including housing, public transport, sanitation, water, schools, crèche, health care etc, to workers in the new emerging industrial areas. Working women’s Hostels should be set-up where there is a concentration of women workers.  Requisite budgetary support for addressing crisis in traditional sectors like jute, textiles, plantation, handloom, carpet and coir etc.  Budgetary provision for elementary education should be increased, particularly in the context of the implementation of the ‘Right to Education’ as this is the most effective tool to combat child labour.  The system of computation of  Consumer Price Index (CPI) should be reviewed as the present index is causing heavy financial loss to the workers.  Income tax exemption ceiling for the salaried persons should be raised to Rs. 5.00 lakh per annum and fringe benefits like housing, medical and educational facilities and running allowances should be exempted from income tax net in totality.  Threshold limit of 20 employees in EPF Scheme be brought down to 10 as recommended by CBT-EPF.  Pension benefits under the EPS unilaterally withdrawn by the Government should be restored. Government and employers contribution be increased to allow sustainability of Employees Pension Scheme and for provision of minimum pension of Rs. 3000/- p.m.  New Pension Scheme be withdrawn and newly recruited employees of Central And State Governments on or after 1.1.2004 be covered under Old Pension Scheme;   Demand for Dearness Allowance merger by Central Government and PSU employees be accepted and adequate allocation of fund for this be made in the budget.  All interests and social security of the domestic workers to be statutorily protected on the lines of ILO Convention on domestic workers.  The Cess management of the construction workers is the responsibility of the Finance Ministry under the Ac t and the several irregularities found in collection of cess be rectified as well as their proper utilization must be ensured. In regard to resource mobilization, the Trade Unions have emphasized on the following:  A progressive taxation system should be put in place to ensure taxing the rich and the affluent sections who have the capacity to pay at a higher degree. The corporate service sector, traders, wholesale business, private hospitals and institutions etc should be brought under broader and higher tax net. Increase taxes on luxury goods and reduce indirect taxes on essential commodities.  Concrete steps must be taken to recover huge accumulated unpaid tax arrears which has already crossed more than Rs. 5.00 lakh crore on direct and  corporate tax account alone, and has been increasing at a geometric proportion. Such huge tax evasion over and above the liberal tax concessions already given in the last two budgets should not be allowed to continue.  We welcome the constitution of SIT for black money and urge for speedy action.  Effective measures should be taken to unearth huge accumulation of black money in the economy including the huge unaccounted money in tax heavens abroad and within the country. Provisions be made to bring back the illicit flows from India which are at present more than twice the current external debt of US $ 230 billion. This money should be directed towards providing social security.   Concrete measures be expedited for recovering the NPAs of the banking system from the willfully defaulting corporate and business houses. By making provision in Banking Regulations Act, CMDs and executives to be made accountable for creation of NPAs.  Tax on long term capital gains to be introduced, so also higher taxes on the security transactions to be levied.  The rate of wealth tax,  corporate tax, gift tax etc to be expanded and enhanced.  ITES, outsourcing sector, educational institutions and health services etc run on commercial basis should be brought under the Service Tax net.  Small saving instruments under postal and other agencies be encouraged by incentivizing commission agents of these scheme. Other suggestions include holding of post budget consultations with the representatives of Central Trade Unions, need for directional change in policies such as stopping of mindless deregulation, encourage entrepreneurship to tackle problem of unemployment, more spending on education and skill development, removal of ceiling on gratuity, bonus and pension etc of workers and following the principle of “Same work, same wages” among others. Representatives of different Central Trade Union groups who participated in today’s meeting included Shri B.N. Rai, Bhartiya Mazdoor Sangh (BMS), Shri Chandra Prakash Singh, Indian National Trade Union Congress (INTUC), Shri Shanta Kumar, INTUC, Ms Amarjeet Kaur, Indian National Trade Union Congress (INTUC), Shri D.L. Sachdeva, Indian National Trade Union Congress (INTUC), Shri Sharad Rao, Hind Mazdoor Sabha (HMS), Shri Harbhajan Singh Sidhu, Hind Mazdoor Sabha (HMS), Shri Swadesh Devroye, Centre of Indian Trade Unions (CITU), Shri Tapan Sen, MP (RS), Centre of Indian Trade Unions (CITU), Shri Dilip Bhattacharya, All India United Trade Union Centre (AIUTUC), Shri Sankar Saha, All India United Trade Union Centre (AIUTUC), Shri Sheo Prasad Tiwari, Trade Union Coordination Centre (TUCC), Shri V.Suburaman, Labour Progressive Federation (LPF), Shri M. Shanmugum, LPF, Shri Prechandan, United Trade Union Congress (UTUC), Shri Abni Roy, United Trade Union Congress (UTUC) and Dr. Virat Jaiswal, National Front of Indian Trade Unions among others. Source: PIB

The date of effect of the recommendations of the 7th CPC will be decided once the Report is submitted: FinMin

The date  of effect of the recommendations of the 7` Central Pay Commission will be decided once the Report is submitted - Finance Minister has stated in a reply of undermentioned Lok Sabha Starred Question:-

GOVERNMENT OF INDIA

MINISTRY OF  FINANCE

LOK SABHA

STARRED  QUESTION NO 243

ANSWERED ON   07.02.2014

SEVENTH PAY COMMISSION

243 . Shri M. KRISHNASWAMY

Will the Minister of FINANCE  be pleased to state:-

(a) whether the Government has initiated the process to constitute the Seventh Central Pay Commission for the Central Government employees;

(b) if so, the details and the present position thereof;

(c) the date by which the new pay is likely to be made effective;

(d) whether the representatives of the Defence forces are likely to be included in the Commission and if so, the details thereof; and

(e) if not, the reasons therefor?

ANSWER

MINISTER OF FINANCE (SHRI P. CHIDAMBARAM)

(a) to (e) A statement is laid on the Table of the House.

see also: The 7th pay commission report - when is it going to be submitted?

STATEMENT AS REFERRED TO IN REPLY TO PARTS (A) TO (E) OF LOK SABHA STARRED QUESTION NO.243 TO BE ANSWERED ON 7 FEBRUARY, 2014 REGARDING SEVENTH PAY COMMISSION BY SHRI M. KRISHNASSWAMY

(a) and (b): The Government has decided to constitute the 7th Central Pay Commission as under: -

1. Shri Justice Ashok Kumar Mathur,  -Chairman
(Retired Judge of the Supreme Court and
Retired Chairman. Armed Forces Tribunal)

2. Shri Vivek Rae,     - Member (Full time)
(Secretary, Petroleum & Natural Gas)

3. Dr. Rathin Roy.     - Member (Part time)
(Director, National Institute of
Public Finance and Policy)

4. Smt. Meena Agarwal,    - Secretary
(OSD, Department of Expenditure,
Ministry of Finance)

(c): The date of effect of the recommendations of the 7` Central Pay Commission will be decided once the Report is submitted.

(d) and (e): The composition of the 7th Central Pay Commission is broadly in line with the composition of the previous Central Pay Commissions. The scope of the task before the Central Pay Commission is framed in such a fashion as to enable the Commission to examine holistically all aspects of emoluments` structure of various categories of Central Government employees, including personnel of Defence Forces, having regard, inter-alia, to the issues specific to them and make recommendations thereon.

Note: Above reply was uploaded on or after 22.04.2013 on Lok Sabha website:-

 

Abolish the New Pension Scheme from Indian Railway: Railway Minister's DO letter to Finance Minister

Hon'ble Minister for Railways Sh. Malikarjun Kharge has written a D.O. Letter to Minister for Finance regarding abolition of New Pension System from India Railways.  The text of the said letter, which has been published by AIRF, is reproduced below:-

MALLIKARJUN KHARGE

MINISTER FOR RAILWAYS

GOVERNMENT OF INDIA

NEW DELHI

No. 2012/F(E)III/1/4-Part

29 March, 2014.

Dear Shri P. Chidambaram ji,

Through this letter, I wish to draw your attention to a long standing demand raised by both Staff Federations of Railways on National Pension Scheme (NPS) for employees of Indian Railways. The Federations have been expressing resentment over operation in the Railways of the National Pension Scheme, which is perceived as a lower social security cover for Railway employees. Their contention is that there are enough grounds for Railway employees to be treated differently from other civil employees of the Government, and that Indian Railways should operate the traditional defined .benefit pension scheme available to pre-01-01-2004 appointee's.

You will recall that a few organizations/categories of Government employees were specifically exempted from the purview of NPS on consideration of special, riskier and more onerous nature of duties. The Federations have been drawing parallel with of nature of duties performed by most categories of Railway employees with those in the Armed Forces. They contend that during British period, Railways was conceived and operated as an auxiliary wing of the Army. It was also realized that by virtue of its complex nature, Railways required a high level of discipline and efficiency to be able to perform its role as the prime transport mode. Railways is an operational organization required to be run round the clock through the year. Railway employees have to work in inhospitable conditions, braving extreme weather, unfriendly law and order scenario, and inherent risks associated with the Railway operations itself. As in the Armed Forces, many have to stay away from their families for long periods while performing duties in areas where adequate facilities are lacking.

I feel that there is considerable merit in the contention of the Staff Federations. Besides the critical and complex nature of duties of Railway employees, the hazards involved are also high. Despite best efforts for enhanced safety measures, a large number of Railway employees lose their lives or meet with serious injuries in the course of performance of their duties each year.

During the period 2007-08 to October 2011, the number of Railway employees killed during the course of their duty has been more than number of passengers/other members of public killed in Rail related accidents including accidents at unmanned level crossings. While the nature of duties of Railway employees is inherently high risk during peace time, they also perform functions of critical importance during war time and times of natural calamities, in moving men and materials across the country to maintain supply of essential commodities and safeguard integrity of the nation.

In my view, there are adequate grounds for the Government to consider exemption for Railway employees from the purview of NPS. The implications of this would be that Government expenditure would reduce over the next few years through discontinuance of Government Contribution under the NPS, but the long term liabilities would increase, as financial commitments in the defined benefit pension scheme would be higher. Since Railways are required to meet the pensionary outgo from their internal resources, switch over to defined benefit pension scheme would call for a more systematic provisioning under the Pension Fund through appropriate revenue generating measures. With Rail Tariff Authority on the horizon, I believe that this would be possible.

In the light of the above, I suggest that our request for exemption from operation of the NPS be considered sympathetically and necessary approvals communicated.

A copy of each demands raised by the two Federations is enclosed. 

With regards,

Yours sincerely,

/sd/

(Mallikarjun Khagre)

Shri P. Chidambaram, Finance Minister,

Government of India, North Block,

New Delhi-110001.

Main demands for inclusion in Memorandum to 7th CPC

For comments & corrections by MOU Partners, Affiliates/Members/Supporters & Welwishers

Few of the main demands of C.G. Pensioners’ identified by BPS for inclusion in the Memorandum to 7^th CPC

(Department wise issues will be attached as Annexure)

1.Bring down the Ratio between maximum & Minimum of Salay to 1: 9

Some 25 years back 4^th CPC had determined the ratio between minimum & maximum of salary to be 10.7(Chapter 41 & 43) Vth cpc   maintained it to be 10.97 (Appendix ‘I’ to VOl.III of 5^thCPC report “ Summary of recommendations” para19) in their recommendations which while implementation was raised to 1:11.76

Shredding the basic fiber of the Constitution of Indian Socialistic State, after implementation of 6^th CPC   this ratio stand raised to 1: 12.85. Both for salaried employees & Pensioners. Which is much more, than even the capitalist countries like America & Britain.

This negative and socially regressive effects of the 6th Central Pay Commission has had the effect of worsening wealth and income inequality not only between pre-and post-2006 retirees, but even within pre-2006 retirees where in higher-ups from Scales S30.S31& above got full parity in Pension.

 Raising, instead of reducing  the ratio between minimum & maximum of salary is  unconstitutional .

We demand:  That Preamble to the Constitution, Articles 366(17),14 & 21read in the light of Honourable Supreme Court judgements, in the cases of D.S. NAKARA & OTHERS  Vs UNION OF INDIA DATED 17/12/1982   1983 AIR  130,1983 SCR  (2) 16, 1983 SCC  (1) 305 1982 SCALE  (2)1213, and, in the case of Consumer Education and Research Centre & Others Vs union of India(AIR 1995 supreme court 922) to be implemented in letter & spirit.

Accordingly the Ratio between minimum & maximum of Pay/Pension should progressively go on reducing ensuring complete equality.

We appeal to the 7^th CPC: That the ratio between maximum & minimum Salary/Pension be brought down to 1: 9 accordingly, 7^th pay commission should first workout the top most revised salary, divide it by 9 to arrive at the minimum revised salary & then on this basis derive a uniform multiplication factor to arrive at revised Pay & Pension with the condition that Pension shall not in any case be less than 65% & family Pension 45% of the last Pay in Pay in Pay Band/Pay scale or of average of last 10 months emoluments (Whichever is more beneficial)

2.Pension to be 65% of last drawn or 65% of Av. Of   last 10 months emolument whichever beneficial & Family Pension to be 45% of last drawn or Av. Of 10 month:

 Honorable Supreme Court, in its landmark 5-Judge Constitutional Bench judgment dated 17.12.1982 in the case D.S.Nakara vs UOI, ruled that “A pension scheme consistent with available resources must provide that the Pensioner would be able to live Free from  want, with decency, independence and self respect, and at a standard equivalent at pre- retirement level”. As laid down in Para 127.9 of 5th Central Pay Commission report Vol. III, the study done by the Consultants to 5th Central Pay Commission (TECS - Tata Economic Consultancy Services) recommended Pension to be 65% of the last emoluments drawn.

We demand 65% of the last drawn emoluments or 65% of the last 10 months’ average emoluments, whichever is more beneficial, as Pension and 45% as Family Pension subject to the condition that minimum pension shall not in any case will be less than 65 % of the 7th Central Pay Commission revised minimum Basic Pay of Central Govt. employees,

3. Grant 5% upward enhancement in pension be granted every five years’  after the age of 60 years & upto 80 years & thereafter as per existing dispensation.

In their Para 5.1.32, the 6th Central Pay Commission agreed that older pensioners require a better deal on account of their needs, especially those relating to health, increase with age. Accordingly, the Commission recommended that quantum of pension available to the old pensioners should be increased as follows:-

On attaining age of Additional quantum of pension

            •           80 years - 20% of basic pension

            •           85 years - 30% of basic pension

            •           90 years - 40% of basic pension

            •           95 years - 50% of basic pension

            •           100 years - 100% of basic pension

In the present scenario of climatic changes, incidence of pesticides and rising pollution old age disabilities/diseases set in by the time an employee retires and go on manifesting very fast, needing additional finances to take care of these disabilities and diseases, especially as the cost of health care has gone very high compared to 01.01.2006.

We therefore, demand, that 5% upward enhancement in pension be granted every five years’  after the age of 60 years & upto 80 years & thereafter as per existing dispensation.

4.. Pension to be net of Income Tax :

The purchase value of pension gets reduced day by day due to continuously high inflation and steep rise in cost of food items and medical facilities. Retired persons/Senior citizens do not enjoy fully public goods and services provided by Government for citizens due to lack of mobility and many other factors. Their ability to pay tax gets reduced from year to year after retirement due to ever-increasing expenditure on food and medicines and other incidentals. Their net worth at year end gets reduced considerably as compared to the beginning of the year. Inflation, for a pensioner is much more than any tax. It erodes the major part of the already inadequate pension. To enable pensioners, at the far end of their lives, to live in minimum comfort and to cater for ever rising cost of living, they may be spared from paying Income Tax.

We demand that pension should be net of income tax as recommended by 5th Central Pay Commission, vide their Para 167.11(VTH CPC REPORT VOL. III)

5. Automatic Merger of Dearness relief with Pension :

The Pension of Central Government Pensioners undergo revision only once in 10 years during which period the pension structure gets seriously dis-aligned; 50% increase in price takes place even in less than 5 years. This results in considerable erosion of the financial position of the pensioner with otherwise inadequate Pension. As admitted by Shri Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, in his statement to PTI on 27.2.2008, DA does not adequately take care of inflation. Working employees are getting automatic relief by way of 25% increase in their allowances with every 50% rise in Dearness Allowance. As pensioners do not get any allowances, they feel discriminated against. In order to strike a balance, DR may be merged with Pension whenever it goes beyond 50% as recommended by 5th Central Pay Commission.

We demand automatic merger of DR with pension, whenever it goes above 50%

6. Restoration of commuted vale of Pension in 12 years

Commutation value in respect of employee superannuating at the age of 60 years between 1.1.1996 and 31.12.2005 and commuting a portion of pension within a period of one year would be equal to 9.81 years Purchase. After adding thereto a further period of two years for recovery of interest, in terms of observation of Supreme Court in their judgment in writ petitions No 395-61 of 1983 decided in December 1986, it would be reasonable to restore commuted portion of pension in 12 years instead of present 15 years. In case of persons superannuating at the age of 60 years after 31.12.2005 and seeking commutation within a year, numbers of purchase years have been further reduced to 8.194. Also, the mortality rate of 60 plus Indians has considerably reduced ever since Supreme Court judgment in 1986; the life expectancy stands at 69 years now.

We demand restoration of commuted value of pension in a period of 12 years.

7. The 6th Central Pay Commission’s new benefits, e.g. full pension for 20 years of service/10 years in superannuation cases, last pay drawn or average of last 10 months’ pay whichever is beneficial to the retiring employee as emoluments for computation of pension etc., have been limited only to post-1.1.2006 retirees.  This is in violation of the letter and spirit of Hon’ble Apex Court judgment in Nakara Case. 

We appeal to the 7^th CPC to extend the above benefits to all pre-1.1.2006 retirees with monetary benefit from 1.1.2006 to do them equal justice. And that new benefits as 7^th CPC too be made equally applicable to present & past pensioners

8..Medical facilities:

To ensure hassle free health care facility to Pensioners/family pensioners, Smart Cards be issued irrespective of departments to all Pensioners and their Dependents for cashless medical facilities across the country. These smart cards should be valid in

•        all Govt. hospitals

•        all NABH accredited Multi Super Specialty hospitals across the country which have been         allotted land at concessional rate or given any aid or concession by the Central or the State govt.

•        all CGHS, RELHS & ECHS empanelled hospitals across the country.

·                Medical attendants. Reimbursement bill for treatment both for hospitalization & No referral should be insisted in case of medical emergencies. For the purpose of reference for hospitalization & reimbursement of expenditure thereon in other than emergency cases Doctors/Medical officers working in different Central/State Govt. department dispensaries/health units should be recognized as Authorized OPD can be made by respective departments.

The enjoyment of the highest attainable standard of health is recognized as a fundamental right of all workers in terms of Article 21 read with Article 39(c), 41, 43, 48A and all related Articles as pronounced by the Supreme Court in Consumer Education and Research Centre & Others vs Union of India (AIR 1995 Supreme Court 922) The Supreme court has held that the right to health to a worker is an integral facet of meaningful right to life to have not only a meaningful existence but also robust health and vigour. Therefore, the right to health, medical aid to protect the health and vigour of a worker while in service or post retirement is a fundamental right-to make life of a worker meaningful and purposeful with dignity of person. Thus health care is not only a welfare measure but is a Fundamental Right.

We demand that, all the pensioners, irrespective of pre-retiral class and status, be treated as same category of citizens and the same homogenous group. There should be no class or category based discrimination and must be provided Health care services at par with IAS and ex-Ministers.

9. Hospital Regulatory Authority:

To ensure that the hospitals do not avoid providing reasonable care to smart card holders and other poor citizens, a Hospital Regulatory Authority should be created to bring all NABH-accredited hospitals and NABL-accredited diagnostic Labs under its constant monitoring of quality, rates for different procedures & timely bill payments by Govt. agencies and Insurance companies. CGHS rates be revised keeping in mind the workability and market conditions.

We demand that a Hospital Regulatory Authority be constituted.

10.Fixed Medical allowance (FMA):

As is recorded in Para 5 of the minutes of Committee of Secretaries (COS) held on 15.04.2010 (Reference Cabinet Secretariat, Rashtrapati Bhavan No 502/2/3/2010-C.A.V Doc No. CD (C.A.V) 42/2010 Minutes of COS meeting dated 15.4.2010) which discussed enhancement of FMA: CGHS card estimates for serving Personnel since estimates are not available separately for pensioners M/O Health & Family Welfare had assessed the total cost per card p.a. in 2007-2008 = Rs 16435 i.e. Rs.1369 per month for OPD. Adding to its inflation the figure today is well over Rs 2000/- PM. Ministry of Labour & Employment, Govt. of India vide its letter no. G-25012/2/2011-SSI dated 07.06.2013 has already enhanced FMA to Rs 2000/- PM for EPFO beneficiaries. Thus, to help elderly pensioners to look after their health, Adequate raise in FMA will encourage a good number of pensioners to opt out of OPD facility which will reduce overcrowding in hospitals. OPD through Insurance will cost much more to the Govt. As such the proposal for raising Fixed Medical allowance to Pensioners is fully justified and is financially viable.

We demand that FMA for all C.G. Pensioners be raised to at least Rs 2000/- PM without any distance restriction linking it to Dearness Relief for automatic further increase. We further demand that FMA be exempted from INCOME TAX: Fixed Medical Allowance (FMA) is a compensatory allowance to reimburse the medical expenses. As Medical Reimbursement is not taxable, FMA should also be exempted from Income Tax.

11.Grievance redressal Mechanism:

Pensioners/Family Pensioners are exploited, harassed and humiliated by their own counterparts in chair, who at the sight of an old person adopt a wooden face and indifferent attitude. Pensioners do not have representation even in Forums & Committees wherein pension policies and connected matters are discussed. The forum of Pension Adalat too is not of much avail as it meets only once a year which is too long a period for an elderly nearer to his end. Moreover, these Adalats deal with settlement claims only. SCOVA too meets only twice a year for about 3 hours at occasion. Moreover, the scope of SCOVA is limited to feedback on Government policies. DOP (P&PW) is perceived as a toothless authority which lacks direct Service Delivery Capability. It has been striving over the years to redress the Pensioners’ grievances through the ‘Sevottam’ model of the Department of Administrative Reforms & Public grievances; in the absence of strict timeline with punitive clause it is, however, proving to be a failure. Grievances are either not resolved for years or closed arbitrarily without resolving.

We therefore, appeal that for resolving Pensioners complaints of all pensioners,

(i) A strict time line with punitive clause be introduced in “Sevottam model”

(ii) Grievances are not allowed to be closed without resolving.

(iii) SCOVA be upgraded to JCM  level covering all Pensioners by introducing suitable legislative amendment  if required.

(iv) As recommended vide Vth CPC report Vol III para 141.30 Pensioners’ representatives should be included in various committees & other For a of Govt where issues relating to the welfare of pensioners are likely to be discussed &debated

Er.S.C.Maheshwari

Secy Genl

Bharat Pensioners Samaj

Source : http://scm-bps.blogspot.in/2014/03/main-demands-for-inclusion-in.html